Rob Clifford, Chief Executive at Stonebridge
The vast majority of borrowers are very happy with their mortgage broker. In fact, the FCA’s latest Financial Lives survey shows that 84% of borrowers spoke positively about their adviser.
That’s not surprising. The brokers I know spend years – decades, even – cultivating relationships with their customers. And those relationships are built on trust and mutual respect.
That makes it all the more frustrating when national media reports try to tarnish the reputation of advisers who work hard every day to deliver a quality service.
One recent story I am referring to featured a so-called ‘whistleblower’ claiming that brokers were pushing two-year fixes simply to earn commission more frequently.
Forgive the outburst, but that is absolute nonsense. Allegations this serious need to be backed up by evidence. But this one wasn’t. Not at all.
All this unnamed person offered was the vague assertion that “some brokers” had admitted to them that they were currently only recommending two-year deals to their customers.
If this really were a widespread practice, the industry data would show it. But it simply doesn’t.
According to UK Finance, in July 44% of borrowers took two-year fixes – the same proportion as those opting for five-year deals. The last time two-year fixes dominated and accounted for more than 50% of new lending was at the end of 2017.
Given the lack of detail, we have to assume that the anonymous whistleblower works for a lender that writes more two-year business than the industry norm. If that’s the case, then I would wager that it has something to do with that lender’s pricing.
Pricing of products will always be the primary consideration for borrowers when choosing a mortgage product. And for the first time in three years, two-year fixed rates are generally cheaper than their five-year equivalents.
Unsurprisingly, then, two-year fixed rates are extremely popular at the moment, with Moneyfacts data showing that they made up around half of all mortgage product searches last month. Consumers are asking for them – it makes sense.
The idea that advisers are “pushing” these products therefore ignores the reality that consumer demand is the key driver as is lender pricing strategy. Brokers clearly make recommendations, the decision ultimately rests with the borrower.
And let’s not forget that for the past 18 months borrowers have been reading almost daily that bank base and mortgage rates will fall. The Bank of England (BoE) has tried to temper expectations, but the consensus remains that rates will ease further – even if they now drop a little slower than first expected.
Against that backdrop of further price falls, many homeowners are clearly cautious about locking in for five years at today’s rates.
Borrower psychology is another factor. Memories of the 2021–23 rate spike – when the average mortgage rate jumped from around 2% to more than 6% in just two years – remain fresh. Understandably, homeowners are wary of committing long term. When the BoE signals the end of the current rate cycle, five-year fixes will almost certainly regain popularity.
The whistleblower’s claim also rests on a flawed assumption: that five-year fixes are inherently “better” for borrowers at the moment.
Who decided that, exactly? The only way that would be true is if we knew for sure that mortgage rates would be higher in two years’ time. But no one – not me, not the BoE, not even the whistleblower – knows where rates will be in two years. To suggest otherwise is, at best, being disingenuous and is vexatious in my view. Come forward, name yourself and name the improper brokers – and risk defamation proceedings!
Even if we knew what will happen to rates, mortgage advice is not one-size-fits-all. For some customers – say, a family planning to move in a couple of years – flexibility is a key consideration. Therefore, a short-term deal may be most suitable. For others, certainty and stability are paramount, and a longer fix is the right fit. The adviser’s role is to be a guide through these trade-offs, not impose generic solutions.
It’s also worth stressing how tightly and successfully regulated the mortgage market has become since the financial crisis. Brokers document their advice and can professionally defend their recommendations when challenged.
I can’t speak for Directly Authorised brokers who arguably face less regular scrutiny than AR firms but, at Stonebridge, compliance and ensuring that quality advice is delivered is of critical importance. Last year, we surpassed 4 million case file checks through our AI-powered Check, Action, Resolve system that runs over 50 checks on every submitted mortgage file. That level of scrutiny leaves little room for the kind of broker behaviour alleged in the press report. And if it did occur, our technology and our supervision teams would spot it.
Whistleblowers play an essential role in exposing wrongdoing. But when claims are made apparently without evidence, the effect is corrosive. Suggesting that brokers en masse are gaming the system for personal gain is laughable and unfair. Furthermore, it risks damaging the trust that underpins the adviser-customer relationship.
The reality is that mortgage brokers are highly trusted, tightly regulated and the vast majority are motivated by their duty to their customers. Trust is hard-won and easily lost. Brokers deserve better than to be smeared with such baseless accusations.
Stonebridge is one of the largest independent networks in the UK, arranging around £15 billion of mortgage lending each year. We currently authorise and supervise more than 1,300 advisers across the UK.
Independent industry research has recently shown that more AR firms have chosen to join Stonebridge in 2025 than any other mortgage and protection network.
If you’re a mortgage and protection adviser looking to support your customers with a market-leading level of support and technology, contact us here to discuss how our proposition can help.
